VIX Pullbacks

August 16, 2012 5:24am by Barry Ritholtz

On Monday, we showed Dick Arms’ chart correlating this level of VIX with subsequent market tops (The Disappearing Market).

Since then, Market Tech Reports noted the percentage drops associated with the VIX at this level — from 6-19%. Its noteworthy that each of these falls have been arrested and reversed by Fed actions involving QE or Operation Twist.

click for larger chart

Source: Market Tech Reports

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